Gold Struggles to Stay Above $1300 Despite Spike In Demand From Italian Crisis

The XAUUSD pair has been moving range bound near the $1300 price range with the pair trying to breach and stay above $1300 multiple times during Wednesday’s session, however, the pair continues to drop due to lack of momentum. The yellow metal continues to lose ground in the market despite investors choosing to move to safe havens as the spike in US Greenback’s strength and higher yields from U.S Treasury Bonds has caused traders and investors to abandon Gold.

some Analysts are of opinion that “Momentum of gold on the downside is limited given the plethora of geo-risks on the table”. If the political uncertainty surrounding Italy and threat of Sanctions on Chinese goods import continues any further Analysts predict the possibility of a solid increase in Gold Bids.

Silver continues to move range bound well inside $16 price range. A look at the hourly chart and 20 days SMA shows signs of downtrend movement lurking in price action in near future. The intra-day bias and investors opinion continues to remain bullish as long as the XAGUSD pair remains above $16 price range. The pair is expected to move within $16.05 to $16.85 during this week based on how macro data and Geo-political events turn out.

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Oil prices were mixed in early Asian trade on Wednesday, with worries that Saudi Arabia and Russia will pump more crude weighing on the market. But few analysts predict that the chance of increased production within June 2018 is highly unlikely as the cartel and its allies will be watching the ongoing geopolitical events that could impact broader global growth.

If OPEC, however, sees Brent Crude persistently getting higher toward the $80 a barrel region, the cartel perhaps would take some action to bring more supply. Currently, WTIUSD is trading around $66 price range and is expected to move within $65 to $68 during today’s trading session.